According to CoinDesk, Ether's recent sell-off has hit a pause, encountering a barrier represented by an upward-sloping trendline. This trendline characterizes the rally from the lows of October and January. The inability of bears to penetrate this bull-market trendline since Monday suggests a possible price bounce before another attempt to extend the recent declines.
Ether, the native token of the Ethereum blockchain, has seen a drop of over 15% to $3,000 from highs near $4,100 two months ago. The CoinDesk 20 Index (CD20), which measures the broader crypto market, has lost 17% in the same period.
Supporting the possibility of an Ether price bounce is the daily MACD histogram, which has turned positive, indicating renewed bullish momentum. The MACD is a widely used tool to assess trend strength and changes. Intraday momentum is also showing steady improvement, with the widely tracked 50-hour simple moving average (SMA) trending north again, providing reassurance.
Immediate resistance is seen at the 50-day SMA near $3,180, followed by a descending trendline representing the recent correction, currently at $3,225. If the price falls below the bullish trendline, it would signify the end of the broader uptrend, potentially leading to a more pronounced sell-off.